The bleak economic situation has hit car dealers in Sweden hard. Along with real estate companies, the car dealer industry is the most competitive so far this year, reports Dagens industri.
During the first half of the year, a total of 108 car dealer companies have been declared bankrupt according to the credit information company Creditsafe, the newspaper writes. Last year, the same figure was 63, an increase of 71 percent. The year before, the number of bankruptcies was 50.
Falling revenues and lacking buffers are often the cause of the bankruptcies, according to the industry organization Motorbranschens riksförbund.
Those who have the biggest problems are those who sell smaller new car brands to private customers and who have not been able to shift to more used car sales, says CEO Tommy Letzén to DI.
